Millennium Tower Boston Completes $650M in Sales in Four Months

Millennium Partners demonstrates an appetite for the ultra-luxury condos in Boston; Bluerock Residential Growth REIT is attracted to Austin; and Hunt Mortgage provides a Fannie Mae loan facility to a property located in Rochester, N.Y.

Boston—When you think ultra luxury condos, Boston isn’t the first city to come to mind. Yet apparently there is an appetite for the product, as Millennium Partners have sold out 70 percent of the Millennium Tower Boston development in just four months. Approximately 75 percent of the $650 million worth of sales were to local buyers.

The 60-story property opens in 2016 in the heart of Downtown Boston at 1 Franklin Street. Its 442 residences range in size from 821 to 12,842 square feet—and between $1.5 million and $37.5 million in price. Amenities include 24-hour concierge and valet service; a two-level, 23,000-square-foot owner’s lounge with a terrace, theater, billiard tables, fireplace, library, function room; and Mina at the Tower, a restaurant by chef Michael Mina.

Bluerock Residential Growth finds Austin attractive

Austin, Texas—Bluerock Residential Growth REIT Inc. is expanding in Austin with the acquisitions of Fox Hill, a 288-unit Class A asset. The firm expects to make a $10.6 million equity investment to pick up an aggregate 85.6 percent indirect joint venture interest in the property. The JV expects a purchase price of $38.2 million. According to Bluerock, this is about 10 to 20 percent below replacement cost with a 6.25 percent cap rate based on existing rents.

Fannie Mae will be providing a $26.7 million mortgage with a term of seven years bearing interest at 3.57 percent, which will be interest only for the first 48 months. BRG’s third-party joint venture partners in the transaction are expected to contribute approximately 4.44 percent of the equity.

New York—Hunt Mortgage Group announced that it has provided a $2.0 million Fannie Mae loan facility to refinance 150 Park Avenue and Mount Hope Manor Apartments.

The properties are located at 150 Park Avenue and 1150 Mt. Hope Avenue in Rochester, N.Y., and include a total of 52 units (150 Park Avenue has 22 apartments and Mount Hope Manor has 30 units). Mount Hope Manor was built in 1960 and 150 Park in 1950.

The proceeds of the new loan will be used to pay off the existing mortgage and the properties are covered by one blanket mortgage. The borrower is Lubin Realty V LLC, backed by Key Principal Shafigheh Lubin. The loan term is 10-years with 9.5-years yield maintenance, and a 30-year amortization schedule.

This refinance is another example of Hunt’s ability to pair a quality sponsor and their long-term assets with nonrecourse loan terms, an attractive interest rate and significant return of equity, noted Zach Casale with Largo Real Estate Advisors Inc., who brokered on the deal.

Mount Hope Manor is a, three-story apartment building with a unit mix of seven studio apartments, 20 one-bedroom, one-bathroom apartments, and 3 two-bedroom, one-bathroom units, for a total rentable area of approximately 17,570 square feet. Also a three-story apartment building, 150 Park Avenue’s unit mix is eight alcove-studios, two studio apartments and 12 one-bedroom, one-bathroom units, for a total rentable area of approximately 10,004 square feet.